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PCAR or TSLA: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Automotive - Domestic sector might want to consider either Paccar (PCAR - Free Report) or Tesla (TSLA - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Paccar has a Zacks Rank of #2 (Buy), while Tesla has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PCAR likely has seen a stronger improvement to its earnings outlook than TSLA has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PCAR currently has a forward P/E ratio of 9.98, while TSLA has a forward P/E of 79.32. We also note that PCAR has a PEG ratio of 1. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TSLA currently has a PEG ratio of 3.63.
Another notable valuation metric for PCAR is its P/B ratio of 2.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TSLA has a P/B of 16.78.
Based on these metrics and many more, PCAR holds a Value grade of A, while TSLA has a Value grade of D.
PCAR stands above TSLA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PCAR is the superior value option right now.
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PCAR or TSLA: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Automotive - Domestic sector might want to consider either Paccar (PCAR - Free Report) or Tesla (TSLA - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Paccar has a Zacks Rank of #2 (Buy), while Tesla has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PCAR likely has seen a stronger improvement to its earnings outlook than TSLA has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PCAR currently has a forward P/E ratio of 9.98, while TSLA has a forward P/E of 79.32. We also note that PCAR has a PEG ratio of 1. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TSLA currently has a PEG ratio of 3.63.
Another notable valuation metric for PCAR is its P/B ratio of 2.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TSLA has a P/B of 16.78.
Based on these metrics and many more, PCAR holds a Value grade of A, while TSLA has a Value grade of D.
PCAR stands above TSLA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PCAR is the superior value option right now.